The 2025 Senior Deduction under the One Big Beautiful Bill allows up to a $6k deduction per taxpayer for taxpayers 65 or older by the end of 2025 (assuming the taxpayer has a valid social security number).
The deduction has a phase out triggered once Modified Adjusted Gross Income (MAGI) exceeds $75k for a single taxpayer or $150k for married filing jointly taxpayers.
Here's how to figure out if your income will be under the phase out trigger:
- Adjusted Gross Income (AGI) = total gross income from all sources less certain adjustments on Schedule 1 of Form 1040 (resource: Definition of adjusted gross income)
- Add back: Foreign Earned Income Exclusion
- Add back: Excluded income from U.S. territories
If the total is under $75k/$150k (single/married filing jointly), then you'll get the full deduction.
Note that non-taxable Social Security benefits are not considered an add-on to your AGI when calculating your MAGI for the 2025 Senior Deduction. But the taxable portion of your Social Security benefits would be included.
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